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She was born in Balikpapan, Indonesia and grew up in Springfield, Oregon, United States. Her mother is of Indonesian descent and her father is of European-American descent.

Paterson, who attended Thurston High School, first came to prominence in 1994 when she won the Miss Oregon Teen USA 1994 title and competed in the Miss Teen USA pageant. The event, which was televised live from Biloxi, Mississippi, was won by Shauna Gambill of California. After high school she attended Oregon State University, which was featured in both her October Playboy 1999 issue and Playmate of the Year Video Edition. She was a member of Kappa Alpha Theta sorority.

As her reward for being chosen as Playmate of The Year she received $100,000 and a red Chevrolet Corvette. The Corvette also appeared in her Playmate of the Year Video. According to her PMOY video, she is the first Playmate of the Year to have a college degree.

Her greatest non-Playboy related fame came from her appearance in the film Dude, Where's My Car? as Ramdar, the "super hot giant alien chick."

Jodi has a tattoo of a thai pepper on her right buttock. She is a member of the Beta Epsilon chapter of Kappa Alpha Theta at Oregon State. She was selected to deliver opinions on VH1's The Greatest: 100 Hottest Hotties, along with Playmates the Dahm triplets.

The band Zebrahead wrote a song called Playmate of the Year. Paterson is featured in the video, and the issue announcing her selection is delivered to the band's lead singer at the end. The music video is featured as a bonus segment of the Playboy 2001 Video Playmate Calendar which has Paterson on the cover.

On July 15, 2006, Jodi announced her engagement to American motorsports legend Michael Andretti. They were married October 7, 2006 in Napa, California.